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A Brief Report On publicly available information by Luke Smith July 29th 2012
Origins of G4S
The security firm G4S got its British origins in a firm called the Night Watch Services in 1935 as four men cycled to provide security. Over the past 70 years through a number of acquisitions and mergers it has grown into one of the largest private security In More Ways Than firms in the world, in 2011 it was valued at over 7 billion. In 2004 the firm You Might Realise, Securicor merged with the Danish company Group 4 Falick bringing about G4S Is Securing its new name of G4S. Your World G4S Website In the last three years the number of government contracts which make up revenue jumped from 15% to 50% in the UK and was expected to continue rising. This is helped by a steady stream of the countrys most senior politicians and police officers joining the ranks including; former Home Secretary John Reid and former Metropolitan Commissioner Paul Condon as well as former Director of the Prison Service Martin Narey. In 2005 The CEO of the company changed with the current CEO Buckles taking the position two years later it began publicly trading on the FTSE 100 in London. It rapidly became the worlds third largest employer with more than 657000 employees. The Business in the UK represents around 1 Billion and an estimated 10% of the net work for G4S most of the business in the UK is with the government with over 52 000 employed to work on government contracts across the UK.
The revised number was a boost to around 24000, although G4S was contracted for the first 10 000 they insisted they would look for more while the government turned to volunteers, other private security firms and the Army to plug the gap. A written statement to the House of Commons in December placed the number of troops needed at 7 000. A concern to the UK government was the hike in the bill for security which jumped from 282 million (contract to G4S) to over 533 million; this also looked likely to push the budget to nearly 11 billions according to the Parliamentary Public Accounts Committee. This was a result of the renegotiation with G4S, they had already agreed to 2000 guards but for the extra 11700 (totalling 13,700) they charged the organisers over 200 million nearly tripling the contract. As the government struggled to find the numbers needed (See Army section) a number of security scandals began to hit G4S in quick succession. The first appeared to be regarding its security at the new Olympic stadiums. The guards tried to prevent journalists from taking pictures of the stadium from public land despite assurances from Scotland Yard (Met Police) who are in charge of Olympic security that they wouldnt be hassled on public land. The G4S guards however were more than heavy handed and quoted anti-terror law despite it still being legal to take pictures of buildings from public land. This was also echoed at the 02 Arena in Greenwich which had instructed its guards to routinely challenge anyone photographing or filming the stadium. The following month in May the government was forced into ordering an inquiry into the security at the Olympic stadium after a worker who had been working to prepare the stadium for a number of years brought in a fake bomb to show the gap in security. Bemused that he would only be checked in the morning and never again afterwards the worker took a fake package and then photographed himself with it to point out the gap in security barely 24 hours before the stadium was meant to open. G4S Falls Short: With two weeks to go before the Olympic Games were due to start the G4S bosses informed the government that they may not be able to provide all of the 10,000 guards it had been contracted to do so. The government was forced into asking the Military for another 3500 troops to make up the estimated short fall. The Minister responsible for the Olympics James Berkenshire informed the public that the day previously G4S had informed them they would be short and that part of the budget in the contract was for paying the guards and that less will be paid as there would be a lower number of guards. "This has been an accident waiting to happen. The Home Office has waited to make a decision on this because G4S has been saying it is all in hand. But we've run out of time." Whitehall Insider
"G4S has let the country down and we have literally had to send in the troops."
On July the 13th more details began to emerge of the situation which G4S was in. It emerged that they only had an estimated 4,000 out of the 10,000 guards in place and barely two weeks left. The G4S company claimed that there were some delays in progressing applicants something which will be detailed further in the section on training. The G4S executives insisted that they were training around 3000 workers a week and that there would be Keith Vaz MP plenty prepared for the Olympics however an avalanche of criticism began to befall the company and their training process. The fear that was being published in all of the major papers in the UK appeared to not to have been upset either the London Mayor Boris Johnson who said they were pre-curtain-up jitters or the International Olympic Committee whos inspectors were amazed at the amount of security and claimed it would be the most secure of the Olympics to date. Things appeared to rapidly deteriorate for the G4Ss reputation by July 16th as Olympians began to arrive ahead of the Olympics the real crisis was beginning to emerge. Many of the guards they had prepapared didnt show up for work. The Assistant Commissioner Chris Allison who is the Olympic Security Coordinator revealed that officers from Dorset, Surrey, Hertfordshire, Northumbria, South Wales, Strathclyde, West Midlands, Thames Valley and the Greater Manchester Police force were called in to plug the gaps from missing G4S guards. Many of the tabloids were calling for the CEO Buckles to fall on his sword as the situation continued to escalate, the Home Affairs Committee in the Commons summoned Buckles to see them on the 17th and they rapidly admitted that they would not bid for the 2014 Football World Cup or the 2016 Olympics in Brazil and feared they could easily loose up to 50 million. The CEO Buckles defends himself to MPs insisting that he is still the best person for the job and that G4S will retain its 50 million management fee. Although he said he was deeply sorry the following day Sports Minister informed the public penalty clauses will be activated costing up to 50 million and the 57 million management fee will be targeted. G4S expected to loose between 35 million and 50 million, when grilled by MP`s Buckles admitted that they were already at a 20 -30 million loss and only took on the contract to boost their reputation.
G4S Absenteeism
An issue which rapidly affected the security preparations for the Olympics was with the few security guards they were able to train. The issue of absenteeism became rather severe. In Manchester the police were called into to secure a hotel in Salford after only 17 of the 56 guards roistered for the shift arrived at work. The Chair of the Police Federation in the West Midlands Ian Edwards reported that the force was providing 150 officers a day to secure a David Davies PA hotel in Warwickshire were Olympic footballers were currently staying. In Dorset the chairman of the Dorset Police Federation Clive Chamberlain reported that G4S was reporting losses of 15% to 59% in regards to the attendance. "It's chaos, absolute chaos. You shouldn't lose your The Culture Secretary Jeremy Hunt assured the press that local police officer because there were contingencies in place and G4S released a of the Olympics. statement saying that they have accredited over 20,000 Communities are suffering people the following day the police were bussed in to because a private company guard the `Lords Cricket Grounds` members of the has failed to deliver on a Metropolitan Police Force were there for 10 hours before contract." being replaced while guarding the Olympic Archery Ian Edwards West Midlands Police Federation Chair Competition. A source in the Met revealed that they were expected to also return the next day and many of them were upset as it was hardly urgent police work.
As of the 20th of July many police jurisdictions were taking over control security in their areas from G4S as the situation failed to noticeably improve. The Strathclyde Police announced that they had taken over security in Olympic venues in Glasgow which included the Hampden Park Football Stadium. The Greater Manchester Police announced that a team of officers were being sent to the Old Trafford Stadium to protect the mens football matches. The situation was echoed all over the UK with the Olympic Security Coordinator Chris Allison announcing that forces up and down the country were being called on to plug the gaps left open by G4S.
"Following recent developments surrounding security arrangements for the Olympic 2012 events in Glasgow, chief constable Stephen House has decided that Strathclyde police will assume primary responsibility for security at Olympic venues," Glasgow Police Force
Paul Deighton the chair of LOCOG informed the public that the Military would be following their own chain of command and would not be answering to civilian G4S leaders on the ground. Phillip Hammond the Defence Secretary announced out of the 13,500 members of the armed forces being drafted into London over 2,100 of them would be called up from the Reserves. He announced that this would be a Once-in-a-generation event. This did little to hide the contention from the top brass in the armed forces who had noted that they had known for over five years about the Olympics and that MI5 and MI6 had been treating it like a terrorist target for years the sudden deployment spoke more to mismanagement than precision planning. "So they are people who I imagine are getting ready to go on leave with their families, a well-deserved leave perhaps after six months away on operations or training for future operations, and this will hit them very hard indeed."
By July of 2012 the Army was in for another surprise. As the G4S failure began to become apparent to the Home Office they quickly turned to the Ministry of Defence to help plug the gap. Defence Secretary The countrys top generals agreed to send in Phillip Hammond another 3,500 troops to help defend the Olympics. Over a 1,000 of the troops from the 20th Armoured Brigade who are stationed in Germany had just returned from mission in Afghanistan barely two months previous. Colonel Richard Kemp 1,200 officers in the Iron Fist in Germany were informed of their Former British Commander mission change. The 16th Air Assault Brigade and 1st Mechanised Brigade were also informed that they would be called upon. The government were quick to assure the public and press that they would only be used as a last resort although senior military officials went on record stating they expected that if they are called they would be used. The head of the Army General Sir Peter Wall probed the government for assurances that they would be well accommodated and not given menial jobs. Home Secretary Theresa May announced that 7,000 more Olympic tickets were going to be given to the military and they would be compensated for any cancelled summer plans. The following day the MoD established a forward operating base in a warehouse at Stratford near the Olympic Stadium which was rapidly leased, licensed and mobilised into a military base. The same day the RAF took control of British domestic airspace over London in preparation. More bad news was to beset the Army. By July 24th G4S was abysmally understaffed and a further 1.200 members of the armed forces were called in from a half dozen regiments across the UK.
Although the Home Secretary and the Defence Secretary had assured the top brass that the Military would be given a background role that suited their skills etc that turned out to be hardly the case as the situation developed. Members of the military were quickly drafted in to do border patrols on the Olympic venues, they were asked to do bag checks and as the revelation about G4Ss failure with the x-ray scanners became apparent they were also instructed to do roving sweeps to ensure security. The MoD was reportedly exasperated by the government who has recently issued scathing budget cuts which would see a number of brigades removed but then within a month have asked the military to do its largest peace time deployment in recent years. With the extra 1,200 troops in London there were more on mission for the Olympics than in a recent warzone. With a war that was edging over a decade and a sweep of cuts the morale of the armed forces was predicted to be at an all time low.
Accomodation for the troops was also quickly questioned. Over 5,000 had been camped in a park and it was revealed that one Royal Marine commando was left checking bags to later return to a camp that had been beset by midges. Several other troops were issued 16 hour shifts to pick up the slack from the loss of security and were sent to stay at a disused shopping centre in a former tobacco dock in Wapping. It became apparent that with the imminent cuts, for some of the troops this would end up being their last deployment.
Other recent security examples from the Olympics include someone running to grab the Olympic torch from its route where a team of Torch Security Team from the Metropolitan Police Force were called upon to stop him from disrupting the route. The greatest challenge however appeared to emerge during the opening ceremonies 80 heads of state were at Buckingham Palace heading to the Opening Ceremony. With each one bringing their own security they were quickly shuffled into buses and then moved to the Olympic venues. The G4S scandal expanded the responsibility of the police from not just "Concerned at the risk ensuring the safety of the world leaders and diplomats or making sure that is being taken in that terror plots or torch grabbers dont intrude on one of the biggest some areas and the events in British history. But they were rapidly being called on to fill the vulnerability of the UK gaps in security being left by the G4S staff either not materialising due at this critical period" to bad planning among other things with G4S, but also through high Intelligence and Security levels of absenteeism. The relationship between the Police and G4S is Committee already very strong with a 200 million deal with the Lincolnshire police to run a police station, which included issuing over 200 police uniforms to officers with the G4S logo. The company also runs police cells in South Wales, Lancashire and Staffordshire. Through G4Ss program called Policing Solution Database, which is essentially a private police employment agency former police officers from the UK get sent on contracts the world over. G4S claims that most of the 43 Police Services in the UK have relied on its service. The West Midlands are considering a deal worth 1.5 billion which would include carrying out investigations and conducting forensic work, this is also in the works in ten other police services to cut costs. However on the 16th of July following the G4S scandal the privatisation contracts were put on hold while they review it. Three forces, Bedfordshire, Cambridge and Hertfordshire have completely dropped the privatisation plans and appeared to condemn G4S as an option. This is a indication that it is becoming politically unviable to outsource to G4S following the colossal failure of the company during the Olympics. With eight prisons being put out to tender this autumn by the Home Office it is likely that the penal system will review it much the same way as the Police Services around the country have been.
The following March the Public Accounts Committee then announced that it was certain that they would overrun the budget once unaccounted costs Department for Culture, were factored in. The Committee Chair Margaret Hodge MP pointed to Media and Sport the Olympic security as being the key area of concern as they had taken a Spokesman weak stance in negotiating with G4S for the increase in security after the revelations in December. The Department for Culture, Media and Sport refused to recognise the claim and the Olympic Minister announced to the press that he was certain that the games would in fact come in under budget. The Committee on the other hand had by this point estimated that the over all costs would reach 11 Billion. As the G4S scandal unfolded in the early spring/summer of 2012 many of the politicians in the UK rounded on the company for their failures. Around the 11th of July MPs from all of the major parties declared that G4S had let down the country and should not be awarded further contracts. Within a few days David Cameron the Prime Minister released to the press that the government would be looking to get money back from G4S. The Home Affairs Committee On the 17th of July the House of Commons Home Affairs Committee summoned Nick Buckles the chief executive of G4S to explain the fiasco to MPs. The MPs rounded on Buckles, with Conservative MP Nicola Blackwood announcing that following the session with Buckles she had lost all confidence in G4S fulfilling the contract. Keith Vaz Labour MP and Committee chairman was particularly harsh, he forced Buckles into an apology after telling him that they found G4S to be unacceptable, incompetent and amateurish. He also pushed for Buckles to wave the 57 million management fee which Buckles said that G4S was going to keep, despite admitting to it being an embarrassing shambles. During the session Buckles appeared to struggle to defend his company but also his job as some of the MPs called for his resignation.
The morning trading of G4S on the day he was called before the Committee the company dropped 6%. Buckles said that there would be a secure Olympics with the help of the Police and Military and that G4S was looking into paying bonuses to the police and army officers who were called in to cover the gaps in service from G4S staff. The MPs at the end of the session announced that they would be launching an Inquiry. "The chaos which has emerged over the security contract was predictable and undermines confidence in those responsible for managing the Games. "No credible explanation has been given for an astonishing 12-fold hike in management costs and G4S still has not been able to deliver. Now troops are having to be drafted in. The Home Office needs to get a grip." Public Accounts Committee Chair Margaret Hodge The Public Accounts Committee The following day from the Home Affairs grilling of the G4S Chief Executive the Public Accounts Committee also announced to the press that they would be issuing an inquiry into the scandal. The committee has demanded that not only should G4S receive financial penalties, something the Prime Minister announced would happen the day before in Afghanistan, but also should be forced to pay for the costs to the UK government of having to bring in the military. The Committee chairwoman Margaret Hodge also called for the Ministers to do a full audit claiming that the current price tag on the Olympics did not include the cost of Olympic Park, the cost of the Elite Athletes or the transport improvements that were made in London, or the new costs of increased military presence.
The Leader of the Opposition party Labour, Ed Milliband has called for an immediate rethink to the outsourcing of policing. He called on G4S to be blocked from all of the upcoming contracts being put to tender by the Home Office as a result of the Games scandal where it was evident that they woefully underperformed. He confessed at an event on the 19th of July that public-private partnerships were important but was against large scale outsourcing. Other MPs such as Liberal Democrat Julian Huppert who sits on the Home Affairs Committee called for all current contracts with G4S to be reviewed by the countrys Police Authorities. As it becomes apparent that public opinion turns against G4S it is likely that the scandal will continue to cost G4S not only its reputation but also future and possibly current contracts. The G4S Scandal in the UK has caused a stir that has raised concern all over the globe as well as a considerable backlash in the UK. It is unlikely that G4S will leave unscathed as not only has its share prices dropped in response but multi-million pound contracts all over the UK get called into question and British MPs rally to either block or break other contracts signed with the company. G4S has more security guards under its belt than Britain has personnel in its military, but despite its vast size it appears to have failed substantially in one of the biggest high profile security events in recent history.
Source Articles
Arthur, Charles. London 2012 prepares for cyber-attacks Online Olympic security team is working to safeguard 90 venues and huge amounts of data against incursions by criminals and 'hacktivists'. guardian.co.uk. 4 April 2012
Booth, Robert. Olympics opening ceremony tingles spines and stretches wallets Olympic Stadium opens doors to spectators who paid up to 2,012 to see 10,000 performers realise Danny Boyle's spectacular Isles of Wonder. guardian.co.uk. 27 July 2012 Booth, Robert et al. London 2012: frustration and pride as military steps in to clear up G4S mess It's a case of 'I told you so' as military and police facing drastic cuts and low morale ride to the rescue of Olympic security. guardian.co.uk. 20 July 2012 Booth, Robert and Hopkins, Nick. Olympic security chaos: depth of G4S security crisis revealed Recruits tell of chaos over schedules, uniforms and training while expolice officers asked to help out. The Guardian. 13 July 2012 Borger, Julian. Olympic opening: it's security, not diplomacy, on world leaders' coaches Kings, queens and world leaders will have to take the first seat available as Britain imposes the ethos of a school outing. guardian.co.uk. 26 July 2012
Bowcott, Owen. Olympics may disrupt criminal justice system, officials warn Police and courts service negotiate contigency plans for period when transport and security resources are focused on games. The Guardian. 15 December 2011
Clark, Natasha. Olympic jobs - why students will suffer from the G4S debacle Recruitment chaos means students won't be donning G4S uniforms to welcome people to the Games guardian.co.uk. 20 July 2012 Dixon, Samuel. G4s: a brief history of the Olympic security contractor A timeline of key events in the life of the private security firm which has failed to provide enough guards for London 2012. guardian.co.uk. 17 July 2012
Dodd, Vikram. July 7 inquest: coroner's recommendations Lady Justice Hallett has produced a series of recommendations under rule 43 of the Coroners Rules 1984. guardian.co.uk. 6 May 2011
Drury, Ian. Snipers, jets and 13,500 troops on Olympics duty... 4,000 more than Afghanistan HMS Ocean and HMS Bulwark will also be based at Greenwich and Weymouth bay Typhoon jets will be stationed at RAF Northolt, Personnel provided by Royal Navy, Army and RAF. Guardian.co.uk. 16 December 2011
Gibson, Owen. London 2012 organisers: security estimate was 'finger in air exercise', Dame Helen Ghosh faces parliamentary committee, Labour MP questions use of military personnel. guardian.co.uk. 14 December 2011
Gibson, Owen. London 2012: volunteers to bolster Olympics security numbers A few thousand volunteers will be trained up and deployed to help fill gap in provision of security personnel at venues. guardian.co.uk. 22 November 2011 Gibson, Owen. London Olympics security 'will learn from 7/7 bombings' Prior to two-day emergency services exercise in capital, Olympic security chief says 7/7 inquest recommendations will play part. guardian.co.uk. 20 February 2012
Hopkins, Nick. G4S Olympic security recruitment 'totally chaotic' Former police sergeant withdrew application to work at London 2012 due to concerns over employment process and pay. guardian.co.uk. 12 July 2012 Hopkins, Nick. G4S staff 'cheat' on tests to run x-ray scanners at Olympic Games Recruits given several chances to pass exams on bomb detection but just 20 minutes training on machines 'It was easy to miss something and I did a bomb in the bag'. guardian.co.uk. 23 July 2012 Hopkins, Nick. Olympic security is next mission for troops just back from Afghanistan Soldiers who will cover security guard shortage have returned from six months in Afghanistan and three months away training. guardian.co.uk. 12 July 2012 Hopkins, Nick et al. G4S faces financial penalties over Olympic security failures Military forced to provide troops for London 2012 after private security firm admits inability to supply all 13,700 guards. guardian.co.uk. 12 July 2012 Hopkins, Nick et al. Olympic Games: MPs challenge 'astonishing' rise in G4S bill Ministers urged to provide audit of full Games cost as report finds 'no credible explanation' for increase. The Guardian. 19 July 2012 Hopkins, Nick et al. Olympic security: MoD to set up temporary base for troops MoD negotiating lease on site believed to be a warehouse, and PM indicates government will demand money back from G4S. guardian.co.uk. 13 July 2012 Hopkins, Nick and Booth, Robert. London 2012 Olympics: G4S failures prompt further military deployment Army, navy and RAF to provide 1,200 personnel to secure Games as Whitehall and organisers lose faith in private firm. guardian.co.uk. 24 July 2012
Hopkins, Nick and Gibson, Owen. Olympics security bill: how it soared to more than 1bn Organising committee's failure to estimate number of staff needed at London 2012 venues set off panic in Westminster. The Guardian. 9 March 2012 Laville, Sandra. Metropolitan police plastic bullets stockpile up to 10,000 after UK riots Scotland Yard confirms August unrest has led to increase in stock of baton rounds as security measures upped before Olympics. guardian.co.uk. 3 May 2012
Laville, Sandra and Dodd, Vikram. Two terror alerts as Olympics security goes into overdrive Officers called out in two separate incidents: raid on suspected plotters in east London and e-cigarette false alarm. guardian.co.uk. 5 July 2012 London Olympic preparations: missile launchers in Blackheath video. guardian.co.uk. 4 May 2012 Malik, Shiv. Police arrest two on suspicion of Olympics-related terrorism Offences are understood to be connected with a security operation at the Olympic canoeing venue in Waltham Abbey. guardian.co.uk. 28 June 2012 Norton-Taylor, Richard. Privatising security set to increase despite Olympics row G4S failings no bar to more 'outsourcing' Armed forces will rely increasingly on private companies despite concerns Huge accountability gap. guardian.co.uk. 24 July 2012 Olympics 2012: Teen arrested over torch grab video. guardian.co.uk. 20 July 2012 Sparrow, Andrew. G4S boss questioned by MPs over Olympic security: Politics live blog Rolling coverage of the day's political developments, including the G4S boss Nick Buckles being questioned by MPs on the home affairs committee about Olympic security. guardian.co.uk. 17 July 2012 Syal, Rajeev. Police guard Lord's cricket ground after G4S Olympic staff 'fail to turn up' Officers are bussed in to work as security guards for 10 hours at Olympic archery venue. guardian.co.uk. 18 July 2012 Syal, Rajeev and agencies. G4S may lose police support jobs after Olympic fiasco Bedfordshire, Cambridgeshire and Hertfordshire police forces are reconsidering deal struck with shamed security firm. guardian.co.uk. 20 July 2012 Syal, Rajeev and agencies. G4S may lose Olympic management fee as Cameron vows to 'go after' firm Sports minister says penalty clauses in G4S contract will be activated to cut taxpayers' bill for shortfall in security staff. guardian.co.uk. 18 July 2012
Syal, Rajeev and Gibson, Owen. Olympic Games risk going over budget as cost hits 11bn, say MPs Organising committee criticised as security bill more than doubles, but government rejects parliamentary verdict. The Guardian. 9 March 2012
Taylor, Matthew. How G4S is 'securing your world' Budgetary pressure, political will and the lack of a debate over public service privatisation has seen G4S grow exponentially. guardian.co.uk. 20 June 2012 Taylor, Matthew. London 2012 crowds to bring Olympic challenge for CCTV team Security, congestion and sellers of fake merchandise among priorities, with 1 million extra people a day expected in city centre. guardian.co.uk. 13 May 2012
Taylor, Matthew. London 2012: Olympic security questioned after fake bomb stunt Worker at Games site smuggled fake device in digger to highlight gaps in protection of stadium and park. guardian.co.uk. 6 May 2012 Taylor, Matthew et al. Olympics: more pressure on G4S as police replace missing staff Company's share price slumps by almost 9% as chief executive prepares for critical appearance before MPs, guardian.co.uk, 16 July 2012. Taylor, Matthew and Travis, Alan. G4S debacle deals Olympic-sized blow to company's global reputation It has recovered from setbacks before, but who now will say they think G4S is best placed for a policing role or to run a prison?, guardian.co.uk. 16 July 2012 Thomas, David. London 2012: police take over Glasgow security from G4S Strathclyde police says it is taking over 'primary responsibility for security at Olympic venues' including the Hampden Park. guardian.co.uk. 20 July 2012 Topping, Alexandra. G4S Olympic scandal: Ed Miliband calls for rethink of police outsourcing Labour leader says security firm should be blocked from getting government contracts after failure to meet Olympic commitments. guardian.co.uk. 19 July 2012 Travis, Alan. Extra airport staff to ease passport queues only have basic training Immigration watchdog says temporary staff hired to cope with Olympic influx at Heathrow and elsewhere have no experience. guardian.co.uk. 12 July 2012
Travis, Alan. London 2012 will not be dominated by security, police promise Cressida Dick, the Met police counter-terrorism chief, tells MPs the 'balance is right' between security and sport at Olympics. guardian.co.uk. 24 January 2012 Walker, Peter. Olympic military guards will not take orders from security staff Locog chief says military personnel guarding Olympic venues will answer only to senior Games officials or the police. guardian.co.uk. 26 January 2012 Walker, Peter. Olympic park security guards forcibly stop journalists from taking photos Incident which was filmed raises fears of potentially aggressive and over-intrusive security during London 2012 Games. guardian.co.uk. 23 April 2012